§ Mr. BellinghamTo ask the Secretary of State for Trade and Industry what estimate she has made of the annual cost to small businesses of the Working Time Directive. [185474]
§ Mr. SutcliffeThe Department of Trade and Industry estimates in its Regulatory Impact Assessments that the total annual cost to business of the Working Time Regulations is £2.7 billion, of which up to £800 million might apply to small firms. There are also benefits to firms through improved health and safety and a more committed workforce, which may have led to productivity gains.
The Department of Trade and Industry has commissioned research into the impact of the Working Time Regulations. One such report was "Implementation of the Working Time Regulations: follow-up study", Fiona Neathey, July 2003. The report finds that: "In most cases the WTR were not seen as a major business issue. However, the interviews produced some evidence of working time reduction arising from the Regulations and examples were given of operational benefits including more efficient ways of working and the positive impact on worker flexibility and efficiency of reduced working hours. Where a negative impact was cited it was most commonly in relation to increased labour costs, however only one company identified substantial costs which were directly associated with the WTR." (page 9).